2017 Regular Session ENROLLED
SENATE BILL NO. 107
BY SENATOR WHITE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
1 AN ACT
2 To amend and reenact R.S. 32:1261(A)(1)(k) and to enact R.S. 32:1254(O), relative to
3 distribution and sale of motor vehicles; to provide for a licensing exception for
4 specialty vehicle dealers who manufacture wheeled, armored personnel carriers for
5 sale to law enforcement agencies; to provide for an expiration date; to modify certain
6 requirements regarding sales or offers to sell made directly to a consumer; and to
7 provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section. 1. R.S. 32:1261(A)(1)(k) is hereby amended and reenacted and R.S.
10 32:1254(O) is hereby enacted to read as follows:
11 §1254. Application for license; requirements for licensure; contents; licenses;
12 franchise filings; exceptions
13 * * *
14 O. Notwithstanding the provisions of this Chapter and the provisions of
15 Subsection N of this Section to the contrary, this Chapter shall not apply to
16 specialty vehicle dealers who manufacture wheeled, armored personnel carriers
17 for sale to law enforcement agencies and who do not maintain or have a place
18 of business in this state. The provisions of this Subsection shall expire on July 1,
19 2018.
ACT No. 45
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1 * * *
2 §1261. Unauthorized acts
3 A. It shall be a violation of this Chapter:
4 (1) For a manufacturer, a distributor, a wholesaler, distributor branch, factory
5 branch, converter or officer, agent, or other representative thereof:
6 * * *
7 (k)(i) To sell or offer to sell a new or unused motor vehicle directly to a
8 consumer except as provided in this Chapter, or to compete with a licensee in the
9 same-line makes, models, or classifications operating under an agreement or
10 franchise from the aforementioned manufacturer. A manufacturer shall not, however,
11 be deemed to be competing when any one of the following conditions are is met:
12 (aa) Operating a an existing, licensed, and franchised motor vehicle
13 dealership temporarily for a reasonable period, not to exceed two years.
14 (bb) Operating a bona fide retail an existing, licensed, and franchised
15 motor vehicle dealership which is for sale to any qualified independent person at
16 a fair and reasonable price, not to exceed two years.
17 (cc) Operating in a bona fide relationship in which a person independent of
18 a manufacturer has made a significant investment subject to loss in the dealership,
19 and can reasonably expect to acquire full ownership of such dealership on reasonable
20 terms and conditions.
21 (ii) After any of the conditions have been met under Subitems (aa) and (bb)
22 of Item (i) of this Subparagraph, the commission shall may allow the manufacturer
23 to compete with licensees of the same-line makes, models, or classifications under
24 an agreement or franchise from said manufacturer continue operating an existing,
25 licensed, and franchised motor vehicle dealership for longer than two years when,
26 in the discretion of the commission, the best interest of the manufacturer, consuming
27 public, and licensees are best served.
28 * * *
29 Section 2. This Act shall become effective upon signature by the governor or, if not
30 signed by the governor, upon expiration of the time for bills to become law without signature
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1 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
2 vetoed by the governor and subsequently approved by the legislature, this Act shall become
3 effective on the day following such approval.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.